Tesla's Model 3 Long-Range Gets Price Hike For Third Time This Month, But It's Teeny
Portfolio Pulse from Anan Ashraf
Tesla Inc (NASDAQ:TSLA) has increased the price of its Model 3 Long Range in the U.S. by $250, marking the third price hike for this model in the month. The new starting price is $47,740, while the price of the base rear-wheel-drive variant remains at $38,990. This adjustment comes after Tesla reduced the starting prices of the Model Y SUV's RWD and long-range versions by $1,000 earlier in the month, a move CEO Elon Musk attributed to boosting vehicle deliveries during a seasonal demand slowdown.
February 23, 2024 | 7:24 am
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Tesla Inc has raised the price of its Model 3 Long Range for the third time this month, now starting at $47,740. The base model's price remains unchanged. Earlier price adjustments and strategic pricing for the Model Y were aimed at boosting sales.
The price hike for the Model 3 Long Range by Tesla is a strategic move, likely reflecting cost adjustments or demand dynamics. While it indicates a potential increase in operational costs or a strategy to manage demand, the impact on the stock is neutral in the short term due to the small amount of the hike and the unchanged price of the base model. Tesla's earlier price adjustments for the Model Y and the reasoning provided by CEO Elon Musk suggest a broader strategy to maintain sales volume during slower periods, which could support investor confidence in Tesla's market adaptability.
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